Amid the banking sector crisis in the United States, the Swiss Bankers Association released white papers on the digital economy. The white paper report shows how they can help out in the transition toward the digital economy.
The Swiss Bankers Association (SBA) is keen to implement the concept of a digital currency in the form of tokenized deposits based on distributed ledger technology (DLT). They have agreed that a “Deposit Token” (DT) is the solution that will ultimately help in a smooth transition to full digitization of economic activities.
It is a kind of stablecoin that would potentially allow for a wide range of new applications. Additionally, it will reduce risks related to data breaches, increase efficiency, and open up whole new areas of business.
According to the Swiss franc, the deposit token (DT) is programmable money and can be enhanced with additional programmable functions. It should be based on public Blockchain technology which is currently the most popular form of distributed ledger technology (DLT).
The group has identified a few sectors under which DT can be used in the future. It could help in settling wallet-based retail payments in combination with smart contracts. Additionally, it will smoothen e-commerce trading in peer-to-peer transactions. For example, if someone wants to make a pay-per-use license fee then this technology will reduce the complexity and time taken during the transaction.
After a deep analysis of widespread chaos in the crypto sector worldwide, the SBA wants this technology to fully protect itself from any unforeseen potential disaster. The Swiss franc plans to launch three variants of the token according to a white paper report, the Standardized token, the Joint token, and the Coloured token. A DT could be used in smart contracts to design a ledger-based security
